This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation On the 4 hour chart above, price broke above a zone 1.20570-1.4048 with a big green candle now, price right now, price is trading with an increasing bearish bias and I expect this downwards movement to continue to the supportive zone mentioned above followed by a bounce with
Technical observation On the chart above, price pulled back to a resistance zone it established at 1.4004-1.3984 but did not break above it, it bounced below the zone and is right bow it is trading with an increasing bearish momentum. I expect price to decrease to the supportive line 1.3788 follow
Technical observation Following its rejection within the supportive zone 104.78-104.58, USD rose up to the resistance line 106.94 as I had anticipated but could not break above it. I expect another correction to the zone mentioned above and a bounced within it to re-buy this pair; however, price c